Sarawak top state for investments in 2011

SARAWAK recorded the highest approved investments in the country last year.

The total of approved investments recorded for the State in 2011 was RM14.35 billion.

The Malaysian Investment Development Authority (MIDA) records also showed that in terms of manufacturing sector investment, Sarawak came in at third position with RM8.5 billion in investments.

This is still a very significant amount when you consider that taking the two top spots were the already heavily industrialised states of Penang and Selangor.

The Sarawak Corridor of Renewable Energy (SCORE) also registered the second highest amount of investment with RM8.2 billion of approved manufacturing licences.

Now if you also consider the fact that last year was one of the worst for the world economy with global markets tumbling, the Eurozone crisis, unemployment in the United States at 9 per cent, and even China having to battle economic demons, Sarawak’s achievements are even more amazing!

Yes while the US, Eurozone and UK were practically in recession in 2011, Sarawak’s economy continued to grow from strength to strength.

Do you think that just happens by accident? Why would investors be willing to put such serious money into Sarawak in rather jittery times?

Here are a few reasons why investors chose Sarawak:

Prudent Financial Management

Rapid Economic Growth

Business Friendly Government

Good Delivery System

Modern Infrastructure and Excellent Facilities

Bountiful Natural Resources

Young and Trainable Workforce

Generous Incentives for Investment

Oh and most importantly, let’s not forget Political Stability and Good Governance!

Great stuff! Real transformation for a secure future for all Sarawakians and not just passing change.

The manufacturing sector accounted for the largest share of FDIs, which increased by 12.3 per cent from RM29.3 billion in 2010.

“Just like our total trade performance for last year, 72 per cent of the FDIs came from Asian countries,” he said at the Malaysian Investment Development Authority (Mida) annual media conference.

Last week, he said the country’s total trade for last year was RM1.269 trillion, the highest ever, which was underpinned by inter-Asian trade.

He said Malaysia had done reasonably well, considering the challenging external environment, and had exceeded its investment target.

For the first time, Mida’s statistics captured the total investments approved in the manufacturing, services and primary sectors, which showed a 40.7 per cent rise to RM105.6 billion from 4,368 projects last year. The primary sector, comprising agriculture, mining and plantation, and commodities sub-sectors were previously not included in Mida’s total investment figures.

Mustapa said the surge in investment figures showed investors’ confidence in the country.

“It also indicates that Malaysia is on track to attaining the investment targets set under the Economic Transformation Programme by 2020.” Domestic investments accounted for 55.4 per cent of total approved investments.

Sarawak attracted the highest amount of approved investments at RM14.35 billion, followed by Penang (RM14.04 billion),

Sabah (RM13.68 billion) and Selangor (RM13.47 billion). He said domestic investors played an important role and were as active as their foreign counterparts in private investments.

The manufacturing sector continued to be a significant source of growth. Of the total investments approved for the sector, RM34.2 billion, or 61 per cent, were by foreign investments in new projects.

Japan led the pack of foreign investors with investments totalling RM10.1 billion, followed by South Korea (RM5.2 billion), the United States (RM2.5 billion), Singapore (RM2.5 billion) and Saudi Arabia (RM2.2 billion).

On the performance of the states in terms of the number of projects approved, Mustapa said Selangor, Johor and Penang topped the list with 263 projects, 188 projects and 109 projects. By value of investments, Penang was first with RM9.1 billion, followed by Selangor (RM8.7 billion), Sarawak (RM8.5 billion), Johor (RM6.6 billion) and Kedah (RM6.1 billion).

“Penang, Malaysia’s Silicon Valley, has done well not only for the past one to two years, but for the last 30-odd years, due to the strong support of the Federal Government, which continues to spend money to improve its infrastructure with a new bridge and airport.”

The Northern Corridor Economic Region registered the largest number of investments in projects with RM15.3 billion of approved manufacturing licences, followed by Sarawak Corridor of Renewable Energy (RM8.2 billion), Iskandar Malaysia (RM5.7 billion), East Coast Economic Region (RM4.6 billion) and Sabah Development Corridor (RM900 million).